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TMI Blog2017 (7) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at in interest received as per Form No. 26AS and interest disclosed in the return in the computation of taxable total income. 2. Brief facts of the case are that the assessee has filed its return of income on 30.08.2010 declaring total income of Rs..64,30,830/-. The return filed by the assessee was processed under section 143(1) of the of the Income Tax Act ["Act" in short]. Subsequently, the case of the assessee was selected for scrutiny and notice under section 143(2) of the Act as well as notice under section 142(1) of the Act were issued and served on the assessee. In response thereto, the AR of the assessee filed books of account and furnished all details. 2.1 The assessee has been deriving income from salary, house property, shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CBDT in its Circular No. 03/2010 dated 02.03.2010. Since the assessee has not offered the interest income for taxation, the Assessing Officer added the same to the total income of the assessee and brought the same to tax. 3. The assessee carried the matter in appeal before the ld. CIT(A) and reiterated the submissions as made before the Assessing Officer. After considering the submissions of the assessee, the ld. CIT(A) confirmed the addition of Rs..8,27,840/-. 4. On being aggrieved, the assessee is in appeal before the Tribunal. By reiterating the submissions as made before the authorities below, the ld. Counsel for the assessee has pleaded that the addition made by the Assessing Officer should be deleted since the assessee has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... system of accounting does not mean that it should be cash received by the assessee. A credit to bank account is equally a receipt. It is true that if such interest is credited in the accounts of any third party, such interest cannot be taken as receipt. But interest from the bank is different, because the bank holds money on behalf of the account holder. Even where bank collects cheques, dividends, bills, promissory notes and the like for credit to customer's account, the bank is acting as the agent of the customer. This is the essence of banking business. The relationship of the banker and the customer is not necessarily different as between current account and fixed deposits. Since he can draw the fixed deposit amount on maturity, int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account during the F. Y 2009-10, by M/s. State Bank of India, M/s. Dena bank and M/s. National Housing bank with respect to which TDS was deducted in F.Y. 2009-10 is to be assessed as income in the hands of the appellant in the A.Y 2010-11 relevant to the F.Y 2009-10. (iii) For the above mentioned reasons the action of the Assessing Officer to make addition of Rs. 8,27,840/- towards difference in interest received as per Form 26 AS and interest disclosed in the return of income is upheld." It is an admitted fact that the interest towards investment in various deposits has been credited to the account of the assessee and therefore, it has to be treated as receipt. A credit in one's bank account amounts to receipt by the account holder. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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